Why trade balance is not the essence of currency exchange rate determination
byIn July this year the US trade balance stood at a deficit of $63.6 billion against a deficit of $51 billion in July…
Austrian School
An interesting animation on Rothbard’s theory of the Great Depression
byThis is well worth watching and nicely animates the analysis in Rothbard’s classic “America’s Great Depression”. https://www.youtube.com/watch?v=b0SW3BgwL14
Is laboratory in economics possible?
byIn the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
Cut in government outlays is the true tax cut
byWe suggest that projects that government undertakes can be classified as wealth squandering. The fact that the private sector does not undertake these projects…
Why the policy of price stability leads to more instability
byOne of the duties that a central bank is expected to fulfill is to keep the general level of prices in the economy stable….
Why the dollar bill has value?
byWhy the dollar bill in our pocket has value? The value of money is established, according to some experts because the government in power…
How Keynesian ideas continue to destroy the economy
byAs a result of the coronavirus pandemic most experts are of the view that it is the role of the government and central bank…
Can an increase in the demand for money neutralize the effect of a corresponding increase in money supply?
byAccording to popular thinking, not every increase in the supply of money will have an effect on the production of goods. For instance,…
Why the present monetary system is heading for a breakdown
byMost economists hold that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money,…
Saturn Devours His Children
byA recent Wall St Journal article gave vent to a scare-story full of Underconsumptionist claptrap, carried under the catchy headline: “The Coronavirus Savings Glut”….